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Next Previous YPOIK: ATA does not change – Possible extension of measures in 2022 HOME • INSIDER • CYPRUS • YPOIK: ATA does not change – Possible extension of measures in 2022
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The government does not intend to change the existing form of the ATA, nor to reduce or increase it, according to what it stated on ACTIVE and the AGENDA show o Minister of Finance, Konstantinos Petridis, regarding the claim of the unions for concluding a new agreement, so that the adjustment concerns 100% of the increase of the Consumer Price Index, instead of the current 50%.
At the same time, commenting on the increase in interest rates of the European Central Bank, due to its forecasts for further growth of inflation in the Eurozone and reduced growth, the Ministry of Finance noted that the government made sure that the country borrows and meets its financing needs for 2022 and in 2023. “The increase in interest rates affects the public debt and the cost of servicing lending and it is for what we took care of, because we expected it, to borrow cheaply at the right time”, he added.
It will increase in the medium term lending costs to both households and the government, he added.
Tax reform and abolition of the annual corporate fee
Petridis explained that the government adviser is studying and examining some scenarios, which will be presented to YPOIK, in the next period – until the end of the year.
However, he expressed reservations about whether the green tax should be imposed – which is expected to be imposed at European level in early 2023 – as, as he said, it will further increase the price of energy.
The “Tax reform will be fiscally neutral,” Petridis said, noting that businesses and consumers will not be burdened./p>
Asked whether there is an issue of tax-free increase, Mr. Petridis replied that Cyprus has one of the highest tax-free rates in the EU and added that “we will look into it but the margins for tax-free increase are not large.” Announcements, he said, should be expected by the end of the year.
Extension of measures
Asked to answer whether the government is considering extending the horizontal reduction of the fuel tax on fuel and the reduction of VAT after September and specifically until the end of the year, the Ministry of Finance left the window open for such a possibility, saying that there is a possibility for such a thing and depending on the prevailing data is It is possible that the cuts will be extended until the end of the year. create more inflation. & nbsp;